Financial Performance - Net revenue for Q2 2023 was $8,526,000, a decrease of 26.6% compared to $11,588,000 in Q2 2022[22] - For the six months ended June 30, 2023, revenue was $18,364,000, down 19% from $22,644,000 in the same period of 2022[48] - Revenue for the quarter ended June 30, 2023, decreased by $3 million, or 26%, to $8.5 million compared to $11.5 million for the same quarter in 2022[186] - The operating loss for the three months ended June 30, 2023, was $(1,595,000), an increase in loss of 11% from $(1,433,000) in the same period of 2022[49] - The total segment operating profit decreased by $0.49 million, or 65%, to $0.26 million for the quarter ended June 30, 2023, compared to $0.75 million for the same quarter in 2022[201] Assets and Equity - Total assets decreased to $16,068,000 as of June 30, 2023, down from $20,763,000 as of December 31, 2022, representing a decline of 22.5%[20] - Total stockholders' equity decreased to $8,051,000 as of June 30, 2023, down from $12,388,000 at the end of 2022, a decline of 34.8%[20] - As of June 30, 2023, the company reported total intangible assets of $16,473,000, with net carrying amounts of $8,921,000 after accumulated amortization[98] Cash Flow and Expenses - Cash and cash equivalents dropped to $132,000 at the end of Q2 2023, down from $1,341,000 at the end of 2022, a decrease of 90.2%[20] - The company experienced a net cash used in operating activities of $(2,826,000) for the six months ended June 30, 2023, compared to $602,000 provided in the same period of 2022[28] - Cash inflow from financing activities was $1.6 million for the six months ended June 30, 2023, compared to $1 million for the same period in 2022[212] Customer Concentration - The top customer contributed $4,519,000, accounting for 53% of total revenue for the three months ended June 30, 2023, compared to 39% in the same period of 2022[50][51] - For the quarter ended June 30, 2023, revenue from the top five customers accounted for approximately 81% of total revenue, compared to 73% for the same quarter in 2022[94] Research and Development - Research and development expenses were $102,000 in Q2 2023, significantly lower than $646,000 in Q2 2022, reflecting a decrease of 84.2%[22] - The company’s research and development expenses primarily consist of employee-related costs for software developers and engineers, aimed at enhancing cloud-based platform applications[174] Debt and Liabilities - The company has a credit facility from Seacoast business funding with a balance of $2,352 thousand as of June 30, 2023, compared to $3,212 thousand at December 31, 2022[120] - The debt-to-equity ratio increased to 0.45 for the quarter ended June 30, 2023, compared to 0.20 for the quarter ended December 31, 2022[203] Stock and Equity Compensation - The company has reserved 600,000 shares under the "2020 Stock Incentive Plan" for stock-based compensation[91] - As of June 30, 2023, the company had 84,356 unvested options with a weighted average grant date fair value of $3.7 per option, and $309 thousand of unrecognized share-based compensation expense related to these options[141][142] Legal and Regulatory - The company has not been involved in any legal proceedings that could materially affect its financial condition[132] - The company is currently evaluating the impact of new accounting pronouncements on its consolidated financial statements[129] Business Strategy and Market Position - The company continues to focus on digital transformation and cloud solutions for the healthcare sector, leveraging technologies such as AI and Big Data[30] - Healthcare Triangle, Inc. is in the early stages of marketing its SaaS offerings, including DataEz, CloudEz, and Readabl.AI, with uncertain impacts on future revenue growth[164] - The company anticipates increasing its employee strength due to investments in sales and marketing to promote solutions in various geographies[162]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-40903 HEALTHCARE TRIANGLE, INC. (Exact name of registrant as specified in its charter) Delaware 84-3559776 (State or o ...

Market Growth Projections - The US healthcare cloud transformation services market is projected to grow to $30 billion by 2027, with a CAGR of 17.4%[35]. - The global market for healthcare data science and analytics is estimated to reach $40 billion by 2025, with a CAGR of 23.5%[35]. - The US healthcare IT services market is expected to be $149 billion by 2025, with a CAGR of 11.7%[35]. - The medical document management market is projected to be $555 million by 2025[35]. Company Offerings and Partnerships - The company is in the early stages of marketing its SaaS offerings, CloudEz, DataEz, and Readabl.AI, which are expected to provide recurring revenues[30]. - The company has established partnerships with major cloud providers, including AWS, Google Cloud, and Microsoft Azure, enhancing its service capabilities[33]. - The proprietary platforms, CloudEz and DataEz, are designed to address challenges in data management and interoperability in the healthcare sector[42][46]. - DataEz platform is a cloud-based data analytics and data science platform specifically designed for large Life Sciences and healthcare organizations, enabling secure analysis and transformation of data from various sources[56]. Service Utilization and Recognition - HTI's healthcare IT services are utilized by over 100 hospitals across the US, including EHR implementation and optimization, managed services, and interoperability assessments[65]. - HTI is among the few MEDITECH READY-certified implementation partners, having successfully implemented and optimized the MEDITECH platform for hundreds of clients[66]. - The company is recognized as a top-tier partner in the AWS Healthcare and Life Sciences competency program, among over 100,000 partners globally[33]. Financial Performance and Risks - In the fiscal year ended December 31, 2022, the top customer accounted for 39% of revenue, and the top five customers accounted for 73% of revenue, indicating significant revenue concentration risk[92]. - The company has experienced rapid growth, with an increase in revenues, customer count, and product offerings, but must effectively manage this growth to avoid operational difficulties[83]. - The sales cycle for the company's products can be lengthy and unpredictable, which may cause fluctuations in revenue and operating results[90]. - The company faces competition from larger firms with greater resources, which could impact its market share and revenue growth[69]. Cybersecurity and Compliance Challenges - Cybersecurity risks are heightened, with potential breaches leading to operational disruptions, reputational harm, and significant costs for remediation[78]. - The company has implemented security measures against cyber-attacks, but these may be insufficient, leading to unauthorized access and data breaches[76]. - The company is subject to numerous privacy and data security laws, and failure to comply could result in significant harm to its reputation and financial condition[108]. - The company must navigate complex compliance issues related to evolving privacy laws, such as the GDPR and CCPA, which may increase costs and liabilities[113][112]. Regulatory Environment and Industry Dynamics - The healthcare regulatory environment is expected to undergo significant changes, which could adversely affect the company's growth and operations[124]. - Increased government involvement in healthcare could adversely impact the company's business and financial condition due to potential changes in reimbursement rates and investment deferrals by clients[118]. - The competitive landscape for healthcare solutions is intensifying, with established competitors having greater resources, which could adversely affect the company's market position[116]. Intellectual Property and Legal Risks - The company may incur significant costs to monitor and protect its intellectual property rights, which could distract management and impact customer relationships[99]. - The company faces potential litigation for infringing on the intellectual property rights of others, which could be costly and time-consuming[100]. - The use of third-party open-source software could expose the company to litigation and compliance risks, potentially harming its business[104]. Operational and Management Considerations - Recent changes in the senior management team, including the resignation of the former CEO, could create uncertainty and disrupt business operations[85]. - The company must continue to adapt to evolving technologies and introduce new products to avoid obsolescence and maintain market relevance[86]. - The company relies on strategic relationships to enhance market presence and product acceptance, and losing these relationships could adversely impact its business[89]. Financial and Stock Market Considerations - The company has received a deficiency letter from Nasdaq regarding compliance with listing requirements, with a deadline to regain compliance by May 30, 2023[154]. - The company submitted a compliance plan to Nasdaq after failing to meet independent director requirements, which was accepted, granting an extension for compliance[155]. - The company has never declared or paid any cash dividends on its common stock and does not expect to do so in the foreseeable future[179]. - The trading market for the company's common stock may be adversely affected if analysts publish unfavorable research[164]. Revenue and Expense Management - For the twelve months ended December 31, 2022, the company generated revenues of approximately $45.9 million, an increase of $10.6 million or 30% compared to $35.2 million for the same period in 2021[190]. - The company aims to shift revenue towards recurring and subscription-based models over time, as software services typically have lower gross margins[205]. - Research and development expenses are expected to increase in absolute dollars as the company focuses on developing new product offerings[217]. - General and administrative expenses are expected to rise to support business growth, although they may decrease as a percentage of revenue over the long term[221].

Financial Performance - Net revenue for Q3 2022 was $11,950,000, representing a 48.5% increase from $8,078,000 in Q3 2021[20] - Net loss for Q3 2022 was $2,339,000, compared to a net loss of $1,992,000 in Q3 2021[20] - For the nine months ended September 30, 2022, the net loss was $4,747,000 compared to a net loss of $2,504,000 in the same period of 2021, indicating a deterioration in financial performance[25] - Total revenue for the nine months ended September 30, 2022, was $34,594,000, representing a 33% increase from $26,081,000 in the same period of 2021[43] - The company reported a net loss before income tax of $2,302,000 for the three months ended September 30, 2022, compared to a loss of $1,991,000 in the same period of 2021, reflecting a 16% increase in losses[44] Assets and Liabilities - Total assets as of September 30, 2022, increased to $24,864,000 from $24,613,000 as of December 31, 2021[18] - Cash and cash equivalents rose to $4,144,000 from $1,770,000, indicating a significant liquidity improvement[18] - Total current liabilities decreased to $5,060,000 from $6,251,000, reflecting a reduction of 19.1%[18] - Total stockholders' equity increased to $17,577,000 as of September 30, 2022, from $16,135,000 at the end of 2021[18] - The balance of short-term borrowing as of September 30, 2022, was $2,453, compared to nil for the period ended December 31, 2021[120] Revenue Segmentation - The company operates in three distinct segments: Software Services, Managed Services and Support, and Platform Services, allowing for targeted resource allocation and performance assessment[39][40] - Software Services revenue for the three months ended September 30, 2022, increased to $6,177,000, a 168% increase from $2,307,000 in the same period of 2021[43] - Managed Services and Support revenue decreased by 21% to $3,708,000 for the three months ended September 30, 2022, compared to $4,673,000 in the same period of 2021[43] - Platform Services revenue increased by 88% to $2,065,000 for the three months ended September 30, 2022, compared to $1,098,000 in the same period of 2021[43] Expenses - Operating expenses totaled $5,675,000 in Q3 2022, an increase from $4,496,000 in Q3 2021[20] - Research and development expenses for Q3 2022 were $1,471,000, down from $2,204,000 in Q3 2021[20] - Sales and marketing expenses increased by $0.49 million, or 37%, to $1.82 million for the quarter ended September 30, 2022, compared to $1.33 million for the same quarter in 2021[195] - General and administrative expenses increased by $0.73 million, or 97%, to $1.48 million for the quarter ended September 30, 2022, compared to $0.75 million for the same quarter in 2021[196] - Depreciation and amortization expenses increased by $0.70 million, or 331%, to $0.91 million for the quarter ended September 30, 2022, compared to $0.21 million for the same quarter in 2021[198] Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $372,000 for the nine months ended September 30, 2022, compared to $3,878,000 used in the same period of 2021, reflecting an improvement in operational cash flow[25] - The company invested $3,279,000 in intangible assets during the nine months ended September 30, 2022, compared to no investments in the same period of 2021, highlighting a focus on growth and development[25] - The company reported an increase in additional paid-in capital of $5,888,000 during the nine months ended September 30, 2022, compared to no increase in the same period of 2021, indicating strong investor confidence[25] Customer Concentration - The top five customers contributed 76% of total revenue for the three months ended September 30, 2022, with Customer 1 alone accounting for 38% at $4,562,000[45] - For the quarter ended September 30, 2022, sales to the top five customers accounted for approximately 76% of total revenue, down from 79% in the same quarter of 2021[89] - Accounts receivable from the five major customers accounted for approximately 62% of total accounts receivable as of September 30, 2022, compared to 88% in the prior year[89] Acquisitions and Growth Strategy - The Company acquired Cornerstone Advisory Services LLC for a total consideration of $7,000, allocated to net working capital of $4,700 and intangibles of $2,300[106] - The acquisition of Devcool, Inc. had an aggregate purchase price of $7,773, with $1,289 recorded as goodwill[108] - The company is in the early stages of marketing its CloudEz, DataEz, and Readabl.AI platforms as SaaS offerings, which are expected to provide recurring revenues[157] Tax and Legal Matters - The effective tax rate for the quarter ended September 30, 2022 was 2%, compared to 0% for the same quarter in 2021[126] - The Company’s federal and state income tax returns are subject to examination for three years from the original filing deadline[128] - The Company has no ongoing legal proceedings that are expected to materially affect its financial condition[131]

Financial Performance - Net revenue for the three months ended June 30, 2022, was $11,588,000, representing a 15.3% increase from $10,050,000 in the same period of 2021[21] - The company reported a net loss of $405,000 for the three months ended June 30, 2022, compared to a net income of $304,000 in the same period of 2021[21] - Total revenue for the six months ended June 30, 2022, was $22,644, representing a 26% increase from $18,003 in 2021[64] - Revenue for the quarter ended June 30, 2022, increased by $1.5 million, or 15%, to $11.6 million compared to $10.1 million for the same quarter in 2021[193] - Revenue from Software Services increased by $3.4 million, or 105%, to $6.6 million for the quarter ended June 30, 2022, compared to $3.2 million for the same quarter in 2021[205] - Revenue from Managed Services and Support decreased by $1.4 million, or 26%, to $3.9 million for the quarter ended June 30, 2022, compared to $5.3 million for the same quarter in 2021[205] - Revenue from Customer 1 decreased by $0.2 million, or 2%, to $8.3 million for the six months ended June 30, 2022, compared to $8.5 million for the same period in 2021[214] Expenses and Liabilities - Operating expenses for the six months ended June 30, 2022, totaled $9,460,000, an increase of 64.5% compared to $5,774,000 for the same period in 2021[21] - Cost of Revenue (exclusive of depreciation/amortization) increased by $1.7 million, or 26%, to $8.4 million for the quarter ended June 30, 2022, compared to $6.7 million for the same quarter in 2021[208] - General and Administrative expenses increased by $0.4 million, or 38%, to $1.4 million for the quarter ended June 30, 2022, compared to $1 million for the same quarter in 2021[200] - Research and Development expenses decreased by $0.2 million, or 21%, to $0.6 million for the quarter ended June 30, 2022, compared to $0.8 million for the same quarter in 2021[198] - Sales and Marketing expenses increased by $0.8 million, or 105%, to $1.6 million for the quarter ended June 30, 2022, compared to $0.8 million for the same quarter in 2021[199] - The company’s total liabilities decreased slightly to $8,283,000 as of June 30, 2022, from $8,478,000 as of December 31, 2021[19] Assets and Equity - Total current assets decreased to $8,578,000 as of June 30, 2022, down from $11,804,000 as of December 31, 2021, reflecting a decline of 27.5%[19] - Total stockholders' equity decreased to $14,106,000 as of June 30, 2022, down from $16,135,000 as of December 31, 2021, a decline of 12.6%[19] - The accounts receivable balance as of June 30, 2022, was $6,547, down from $9,672 at the end of 2021[71] - The net intangible assets increased to $11,005,000 as of June 30, 2022, from $10,458,000 in 2021, marking an increase of approximately 5.2%[99] Shareholder Information - The weighted average shares outstanding for basic net income per common share was 35,484,290 for the three months ended June 30, 2022, compared to 29,579,405 for the same period in 2021[21] - Basic earnings per share (EPS) for the three months ended June 30, 2022, was $(0.011), consistent with the diluted EPS of $(0.011), while the basic EPS for the same period in 2021 was $0.011[153] - The Company issued 807,500 Incentive Stock Options (ISO) at an exercise price of $0.40, vesting over four years, with the first 25% vesting on the one-year anniversary of the grant[142] - As of June 30, 2022, the balance of outstanding stock options was 1,866,219, with 2,133,781 shares available under the equity compensation plan[147] Acquisitions and Investments - The company acquired Devcool Inc. for a purchase price of $7.7 million on December 10, 2021, enhancing its capabilities in solving complex technology problems in the healthcare industry[29] - The acquisition of Devcool, Inc. was completed for a total purchase price of $7,773, with $1,289 recorded as goodwill[114] Market and Operational Insights - The company operates in three distinct reportable segments: Software Services, Managed Services and Support, and Platform Services, focusing on optimizing healthcare IT infrastructures[41][42] - The impact of COVID-19 has not materially affected the company's financial condition, but it has accelerated the adoption of digital solutions in the healthcare sector[33] - The Company aims to enhance its solutions and services to support healthcare delivery organizations and improve operational efficiencies[158] Future Outlook - Research and development expenses are expected to increase in absolute dollars as the Company focuses on developing new product offerings[180] - Sales and marketing expenses are anticipated to continue increasing in absolute dollar terms to support business expansion[182] - General and administrative expenses are expected to rise to support business growth, although they may decrease as a percentage of revenue over the long term[184]

Financial Performance - Net revenue for the three months ended March 31, 2022, was $11,056,000, representing a 39.4% increase from $7,953,000 in the same period of 2021[24]. - The cost of revenue for the same period was $8,162,000, up 41.5% from $5,773,000 year-over-year[24]. - Net loss for the three months ended March 31, 2022, was $2,011,000, compared to a net loss of $814,000 in the prior year, indicating a significant increase in losses[24]. - The company reported a total revenue of $11,056,000 for the three months ended March 31, 2022, compared to $7,953,000 for the same period in 2021, representing an increase of approximately 39%[56]. - Revenue increased by $3 million, or 39%, to $11.1 million for the quarter ended March 31, 2022, compared to $7.95 million for the same period in 2021[210]. - Net income for the quarter ended March 31, 2022, was a loss of $2.011 million, or 18% of total revenue, compared to a loss of $814,000, or 10% of total revenue, for the same period in 2021[209]. Revenue Breakdown - Revenue from the top five customers accounted for 76% of total revenue in Q1 2022, with Customer 1 contributing $3,833,000 (35%) and Customer 2 contributing $1,965,000 (18%)[57]. - For the quarter ended March 31, 2022, sales to the top five customers accounted for approximately 76% of total revenue, down from 83% in the same quarter of 2021[104]. - Software Services revenue increased by 100% to $5,456,000 in Q1 2022 from $2,725,000 in Q1 2021[72]. - Managed Services and Support revenue slightly increased by 1% to $4,269,000 in Q1 2022 compared to $4,226,000 in Q1 2021[72]. - Platform Services revenue grew by 33% to $1,331,000 in Q1 2022 from $1,002,000 in Q1 2021[72]. - Managed Services and Support revenue decreased by $2.1 million, or 73%, to $0.8 million for the quarter ended March 31, 2022, compared to $3 million for the same period in 2021[214]. - Platform Services revenue decreased by $0.5 million, or 100%, to nil for the quarter ended March 31, 2022, compared to $0.5 million for the same period in 2021[215]. Expenses and Costs - Research and development expenses increased to $1,066,000 for the three months ended March 31, 2022, compared to $757,000 in the same period of 2021, marking a rise of 40.8%[24]. - Sales and Marketing expenses increased to $1.740 million, or 16% of total revenue for the quarter ended March 31, 2022, compared to 8% in the same quarter of 2021[209]. - General and Administrative expenses were $1.351 million, or 12% of total revenue for the quarter ended March 31, 2022, compared to 16% in the same quarter of 2021[209]. - Cost of revenue increased by $2.3 million, or 41%, to $8.2 million for the quarter ended March 31, 2022, compared to $5.7 million for the same quarter in 2021[216]. - Research and Development expenses rose by $0.3 million, or 41%, to $1 million for the quarter ended March 31, 2022, compared to $0.7 million for the same quarter in 2021[218]. - Sales and Marketing expenses increased by $1 million, or 161%, to $1.7 million for the quarter ended March 31, 2022, compared to $0.7 million for the same quarter in 2021[219]. - General and Administrative expenses increased by $0.1 million, or 7%, to $1.3 million for the quarter ended March 31, 2022, compared to $1.2 million for the same quarter in 2021[220]. Assets and Liabilities - Total assets decreased to $22,267,000 as of March 31, 2022, down from $24,613,000 at the end of 2021, reflecting a decline of 9.5%[22]. - Total stockholders' equity fell to $14,499,000 as of March 31, 2022, down from $16,135,000 at the end of 2021, a decrease of 10.1%[22]. - The company reported a cash and cash equivalents balance of $1,562,000 at the end of March 31, 2022, down from $1,770,000 at the end of 2021, a decrease of 11.8%[28]. - Accounts Receivable decreased to $6,739,000 as of March 31, 2022, down from $9,672,000 as of December 31, 2021[75]. - The company has a current liability of $2,209,000 related to short-term borrowing as of March 31, 2022[129]. Acquisitions and Investments - The company acquired Devcool Inc. for a purchase price of $7.7 million, which is expected to enhance its technology capabilities in the healthcare sector[33]. - The company acquired Cornerstone Advisory Services LLC for a total consideration of $7,000,000, allocated to net working capital of $4,700,000 and intangibles of $2,300,000[123]. - The acquisition of Devcool, Inc. had an aggregate purchase price of $777,293, including cash payments and equity issuance[125]. - The company recorded a total purchase price of $7,773,000 for recent acquisitions, including $1,289,000 of goodwill which is not tax deductible[129]. Employee and Stock Options - The Company has a total of 73 full-time employees and 261 sub-contractors, including 170 certified cloud engineers and 104 Epic Certified EHR experts[172]. - The Company issued 100,000 shares for services rendered and 149,701 shares for employee stock options, recognizing expenses of $350,000 during the quarter ended March 31, 2022[131]. - The Company issued 807,500 Incentive Stock Options (ISO) at an exercise price of $0.40, vesting over a four-year period[158]. - The Company issued 452,000 Non-Qualified Stock Options (NSO) at an exercise price of $0.40 per option, vesting over a four-year period[159]. - The Company recognized compensation expenses related to ISO/NSO stock options of $14,000 for the three months ended March 31, 2022, and $14,000 for the same period in 2021[165]. Tax and Regulatory Matters - The company recognized total income tax expenses of $21,000 for the quarter ended March 31, 2022, compared to $3,000 for the same period in 2021[145]. - The Company has reported a net deferred tax asset of $0 as of March 31, 2022, after accounting for a valuation allowance of $533,000[144]. - The Company received a PPP loan amounting to $1.1 million, which is forgivable under certain conditions[177]. - The company has applied for a waiver for its Payroll Protection Program loan and is awaiting approval, with interest recognized at a rate of 1% per annum[138]. Future Outlook and Strategy - The company focuses on leveraging technologies such as Big Data, AI, and Machine Learning to improve healthcare outcomes and operational efficiencies[32]. - The company aims to address interoperability challenges in healthcare systems, enhancing digital infrastructure for hospitals and health systems[34]. - The company anticipates that the shift to virtual approaches will create unique opportunities for growth in cloud technology and services[37]. - The Company is in the early stages of marketing its CloudEz, DataEz, and Readabl.AI platforms as SaaS offerings, which are expected to provide recurring revenues[174]. - The company is classified as an "emerging growth company" and will remain so until certain revenue or debt thresholds are met, potentially until December 21, 2026[46].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 001-40903 HEALTHCARE TRIANGLE, INC. (Exact name of registrant as specified in its charter) Delaware 84-3559776 4309 Hacienda Dr., Suite 150 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-40903 HEALTHCARE TRIANGLE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...